Place trust in capitalistic economic theory

Published 6:00 pm, Wednesday, February 15, 2012

To the editor:

I am responding to a letter written by Tim Doherty in Friday’s edition of The Courier titled “Real propaganda: Rich create the jobs.” First, I would like to say off the bat that I have never been hired by a “poor” person for a job. That said, there are some points Doherty makes that I disagree with and there are some that I agree with.

As examples of “rich” people who supposedly do not contribute to jobs, Doherty points to “elite” pro athletes, movie stars, directors, producers, authors, musicians and other members of the entertainment industry, liability lawyers, trust babies and even our President Barack Obama. I happen to work in one of those industries, sports, and it is my observation that each of these actually do create jobs. For example, every successful sports figure I have worked with has an entire team of coaches, sports trainers, managers and charitable organizations they work with and support.

This is also true for almost all entertainers, lawyers and even our president. Further, if they are successful, they will likely use their wealth to build themselves multiple new, expensive homes, working ranches, purchase new cars and other technologies, all of which create jobs. Many also invest in large development projects, another part of my current employment. Without proper investment and asset management, even these “elites” would soon be broke (Believe me, I have seen it happen).

I do agree with him when he says that some CEOs do not “earn” their large paychecks and perks. I would go so far as to say that a lot of CEOs do not “earn” their keep. However, I believe it is the responsibility of the corporations and their investors to determine whether they are getting a good value from their CEOs just as it is their responsibility to determine the same for any employee or division.

I also agree that “lobbyists” are a blight on our political system in that they unduly influence legislation to favor individual corporations or groups - above, beyond and often despite the will of the people.

However, I disagree with his premise that there is not fairness in the capitalistic economic theory. In fact, it is the most fair of systems in that it is the best system to ensure both sides of a transaction get the most value out of their investment. In a capitalistic economy, if someone is asking too much for a particular good or service, there is almost always someone else who will offer it for less and less until the value matches the investment. He used the example of someone who finds ways to produce a commodity more efficiently, making more profits. Initially, that is usually the case. However, it is also usually the case that others soon follow and the product becomes more plentiful and the price soon drops, making it more affordable. This is seen every day in the technology industry as prices are constantly plummeting.

He also states that there is “fairness” in politics (presumably over capitalism) because “politicians are supposed to represent us.” The truth is that most politicians only represent us during the campaigns. Once in office, they seem to do whatever they want, at least until shortly before the next campaign, and then the cycle repeats. I think I would rather place my trust in the capitalistic economic theory than in any politician.

Stephen Chauvin

The Woodlands

The nuclear option: Peace through strength

To the editor:

The term “connect the dots” seems to be appropriate for today’s news. On one hand, we learn that President Obama desires that 80 percent fewer nuclear weapons be available in the United States; on the other hand, we learn that Iran is getting closer and closer to perfecting its nuclear program - for peaceful purposes, of course.

When I “connect the dots,” all I can picture is a world in which Iran upsets the nuclear balance by obtaining nuclear weapons and the United States guts its arsenal. Since Ronald Reagan isn’t around to say it, I’ll say it for him, “Peace through strength!”